What is Location-Based Advertising?

Time to drive more traffic for your business through Location-Based Advertising (LBA)

GPS targeting technology has helped many businesses in hiking their in-store sales. If you are an entrepreneur and having a business venture and want to increase the sales then don’t waste the time and understand that how LBA (location-based advertising) can assist you with surged sales and traffic. Wonder while passing from a Nike store you receive a message of 30% discount on all shoes. The probability of you visiting the store would be double then sitting at home and receiving a message. This is all possible with the help of Location services and the best way of advertising at the right place and time when you are exactly standing in front of a store. Furthermore, if your LBA ad comes with a “Get location” button cleverly placed on that, it’ll provide the direction to your prospects promptly. That is the potential of LBA. But it can only work when you allow the apps in your smartphone to detect the location.

With the increase in usability of smartphones LBA (location-based advertising) is gaining popularity amongst marketers in leaps and bounds. With an economy hit due to this deadly Corona Virus, many businesses have lost their customers and many are even shut down due to no sales in their physical stores. So the retailers should opt for some smart ways through which they can gain their customers and how their stores can be more discoverable on digital platforms. Factual shares a report which says that 9 out of 10 marketers believe that LBA creates higher sales, growth in the customer base (by 86%), and an increase in customer engagement (by 84%).

Adfuel brings you all the details about LBA (location-based advertising) & how it benefits different business sectors. Considering the USA, as per the prediction made by eMarketer, the marketers will be spending $38.7 billion on LBA in the year 2022, although this number definitely needs certain revision in view of the pandemic. Nonetheless, it’s still a sizeable and big segment to ignore.


What is location-based advertising (LBA)?

Location-Based Advertising (LBA) is set up through the incredible blend of versatile advertising, what’s more, advertising with location-based services (LBS), and expanding the incentive for both industry portions. Mobile LBS leverages a spread of mobile device positioning technologies — like cell ID, GPS, and WiFi, additionally as hybrids, like assisted GPS (A-GPS) — to determine the cell phone’s location, which is then utilized as an approach to channel content and data geologically and put it into the setting of the versatile client’s surroundings

Types of LBA techniques

Different parameters are there for Location-Based Advertising. In order to reach out to the target group of clients for your business, you need to gather detailed information. Mentioned below are the types of LBA techniques:-

Focusing on an expansive geographical region, for example, a city or town positively has its advantages, yet the genuine enchantment of area-based advertising lies in its capacity to focus on a specific region, age factor, circumstance, or sex. This makes your message significant and pertinent to the beneficiary.

1. Hyper Contextual Targeting

What does this look like?

We should expect that it’s the first day of the school summer holidays. A nearby waterpark may consider conveying a 10% off coupon alongside a convincing picture of children having a good time on a water slide with their companions.

They decide to send it in a region that is within 5 miles of a close-by grade school, realizing that their intended interest group of youthful families is bunched near the school. They try to send it on a warm and radiant day and do so promptly at the beginning of the day.

The variables that make this fruitful are:

  • School holidays can be difficult work for guardians and they currently have a recommended action that they can do with their youngsters.
  • The advertisement is sent on the main day of special times of the year and not seven days before where it could be neglected.
  • The promotion symbolism shows the parent a gathering of youngsters having a good time, and isn’t that what we as a whole need for our little ones?
  • This equivalent mission would crash and burn in colder months, yet watching the climate and realizing that a blistering day will drive individuals to look for an invigorating action takes advantage of client normal conduct.
  • Families regularly live near their youngster’s schools, and focusing on the area around a grade school will arrive at a decent level of this segment.
  • The mission is sent early enough in the first part of the day to make it’s anything but a mother to get her little ones together for a day out.
  • The pertinence and timing of this advertisement will surely receive rewards, aren’t you agree?

2.Geo Aware Targeting

Geo-Aware Ad Targeting is a promoting technique that utilizes cell phone location information to improve advertisement focusing. Advertisers utilize this strategy to take advantage of geographic data to help characterize and focus on their audience.

Geo-targeting on or ongoing advertising has been around for a decent number of years now. Again, the fundamental focuses here are to consider and have an accumulation of information on the conduct parts of likely clients. So when the intended interest group is nearby your store, these promotions can hit them at the ideal opportunity and invite them to visit your store to make a buy or look at another item.

3.Location or Place-based Targeting

Place-based mobile ads focus on a fixed region and send significant advertisements to clients entering that characterized limit within a particular time span.

Envision entering a film corridor and getting advertisement content that likewise offers you some stunning coupons that can be profited on your bites while you’re there.

Current advertisement designers comprehend the utilization of gadgets and advancements like iBeacons which can speak with iPhones through Bluetooth. This data is utilized to decide the specific area which further aids in deciding a particular time span in which the crowd gets the promotion content.


Geofencing is the formation of a limit inside a particular district. When the target audience enters that limit, they will end up being a functioning objective of the advertising technique. This means they get content, offers, or some other type of information from the brand. An illustration of a limit is a region that envelops a famous retail outlet at which the organization has a store.

How it functions

Geofencing uses GPS innovation to make a boundary. At whatever point an objective client crosses this boundary, they get a notice or piece of information.


  • Geofencing permits advertisers to cover huge regions, for example, shopping centers or occasion spaces. With this technique, advertisers can focus on all clients that are inside a specific border. While less granular than different strategies, geofencing can be an incredible device in case you have an enormous show or you need to catch traffic directly before your store.
  • Geofencing depends on constant area information, which permits advertisers to urge clients to draw in with their items, or redirect purchasers from connecting with contenders.


Geo-conquesting utilizes location information to redirect possibilities from competitor areas. For instance, vehicle sales centers may make a limit around a competitors part. When a product buyer goes in close area to that limit, they will send an offer to clients that urges them to visit the other vendor.

How it functions

Geo-conquesting utilizes GPS technology to target clients nearby your opposition.


  • Businesses can win a piece of the pie and new clients by empowering clients they know are as of now looking for an item in the space to buy from them over a contender.


Beacons are associated gadgets that utilize Bluetooth or WIFI to interface with predetermined applications that are working inside the scope of the reference point. Beacons function admirably to target existing clients inside a little geographic region.

How it functions

Beacons convey a message to your gadget that prompts a server to send content to your gadget. This could be a pop-up message, email, and so on, For instance, say a games arena urges participants to download their application for tagging, concessions, and so on. The setting would set up guides to perceive when a gadget with that application introduced is in range.


  • Clients must be opted-in and have Bluetooth on with the goal for you to use this. No doubt, this mode of location-based targeting does give you a more straightforward correspondence channel with clients.
  • Associations can follow clients inside in a more exact way. This takes into consideration more explicit focusing on, yet assists advertisers with getting a more complete comprehension of client conduct.
  • Clients need not be online to get the notifications.

Benefits of LBA

Moving ahead towards the reasons why to choose LBA? How it can benefit different businesses in Canada & the USA even during this pandemic situation.

Exact time: One of the significant advantages of LBA is the perfect time of the advertisements. As location information is served continuously, there is a chance for brands to target individuals at exact minutes. An awesome model is of how retail marks are utilizing signals innovation to follow the development of individuals passing by their stores.

Apple had started Bluetooth signals with the market in 2013. Reference points are little, battery-worked remote gadgets that send Bluetooth signs to nearby cell phones. Big brands exploit this innovation to draw in clients by sending customized messages.

Targeted: According to a report by IAB UK study, “around 48% of individuals use advertisement blockers since they discover the promotions unessential”. Limiting the promotions, consequently, gives a situation where they can be designated to explicit individuals in various topographical areas.

According to the 2018 Location Based Marketing Report by Factual, LBA helped in promotion focusing on, improved personalization, client experience, and crowd commitment.

As the figure above designates, “advertisers who use location information to customize their promotions discover benefits as far as expanded comprehension of the viewers (91%), more viable missions (84%), more precise focusing on (62%), positive client experience (87%)” (Source: 2018 Location-Based Marketing Report by Factual).

How can businesses benefit from LBA?

Moving ahead to understand better that how LBA is beneficial to many businesses these days. Adfuel will help you know the in-depth advantages of LBA for different ventures and how you can utilize it for your business growth if you have the business among the list of businesses mentioned below-

-Fast Food Chains

2014 saw Starbucks utilizing LBA mobile promotions to focus on their expected clients. The measurement for the estimation of achievement was the footfall or the number of individuals that strolled into the food outlet in the wake of seeing the notice.

Since then, different other worldwide fast food has utilized LBA to expand their deals.

-Clothing and accessory brands

Applications like Regent Street were planned based on the client’s information. Clients entered their preferences into the application and the application consequently shows pertinent shops as according to it if the users are within a set radius of the store.

-Cars and Automobiles

Car sales centers have profited with the utilization of LBA.

Brands like the Rodeo Ford took advantage of its client base by focusing on guys inside the age group of 30 to 45 years with greater probability/expectation to purchase. The ad incorporated a store finder as a CTA (source of inspiration include).

The outcome? A general expansion in the likeliness of individuals tapping the promotion, visiting the store, and inquisitive or booking arrangements for the vehicle.


With wellbeing and wellness being the most stylish trend pattern, it is just normal for this area to take advantage of the capability of the most recent innovation in the realm of LBA.

Gym centers utilize different configurations for LBA. These incorporate geo focusing on, or focusing on a client when they are inside a pre-characterized span of the rec center structure.

Others incorporate techniques like geo-conquesting wherein the well-being places focus on the clients entering a contender building premises. When you enter an exercise center structure to look into their month-to-month/yearly plans, your cell phone is hit with a more appealing proposal from your middle. Brilliant, isn’t that so?

Couple that with some brilliant promotion offers and simple to fill the online structure and you have a change on your hands!

-Real Estate

Real Estate dealers can utilize LBA strategies. The utilization of rich media segments like a property picture exhibition or a guide that pulls the clients to make a visit is utilized. Other CTAs like tap to call, book a meeting, and so on are included in the advertisement plan.

Geo aware focusing on helps the house proprietors to visit/arrive at your proposed property when they are house chasing. Other promoting techniques like geo-conquesting can likewise be utilized adequately.

Visit Adfuel to know more about Location-Based Advertising and how it can scale up your business sales and let you stand ahead of your competitors.

Share This Post
Scroll to Top